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The Power Behind Engagement

Top Four Benefits of Employee Engagement

People are always complaining about their jobs; whether it’s a boss who drives you up the wall, work that bores you to tears or even the nagging suspicion that you’re being underpaid, each unhappy employee has their own reasons for dreading a Monday morning. But when all this unhappiness and discontent gets added up, it turns out it’s having a profound impact on economies everywhere: we’re in the midst of a global employee engagement crisis, with just 13% of employees worldwide engaged with their jobs.

So what exactly does this mean? An easy way to think about employee engagement is to look at your existing staff. Engaged staff are often your best performing employees – they’re efficient, motivated, understand their role and tackle it to the best of their ability. Naturally, we think all employees will be like that when we hire them – otherwise, why bother?

During job interviews, most candidates are very enthusiastic about the job on offer and if you hire them, it’s normally this enthused and engaged person that you actually want working for you. Yet if you find yourself looking at that same excited candidate a year into the job and seeing that they’re unmotivated, checked out and unhappy, it’s clear that they’ve become disengaged. If that’s the case with many of your employees, you might have a problem brewing.

employee engagement table

It doesn’t matter if your business is a tiny start-up or huge multinational corporation – disengaged staff can run it to the ground. As employee engagement drops off, business owners find that deadlines start getting missed, staff are constantly off sick and employees start leaving the business in droves. Work slows down to a crawl, leaving engaged staff to pick up the slack and heightening their stress levels (possibly leading to them hating their jobs too!)

Luckily, by focusing on employee engagement and happiness, you can revive even the most lifeless of workforces. Read on to find out about the top benefits of employee engagement, along with some tips on how to improve it throughout your business.

1. Cost-Savings

Disengaged staff are slowly draining the life out of your business. In the UK, employee disengagement is costing businesses around £340 billion every single year in lost productivity, while in the USA Gallup estimates this figure rises as high as $550 billion.

It’s easy to see how – if you’re paying someone to do a job and they’ve only put in half the effort necessary, they’ll still get paid even if you don’t get the results you need. As for very disengaged employees (often easily identified by their miserable and disruptive attitudes), you may as well be giving money away. Employee disengagement can easily decimate the return on investment on salaries.

On the other hand, engaged employees will improve your profitability and drive revenue. In fact, workforce opinion surveys show that highly engaged employees can boost business performance by 30%. This is because engaged employees are emotionally committed to their company, its values and its goals. They want the business to do well and will do their best to help it succeed. The hard numbers prove this too – companies with engaged employees outperform those without by 202%.

Luckily, there are ways you can help to foster this sort of commitment. For instance, people who are bored to death at their jobs are unlikely to care about it much, whereas 78% of employees who say their companies encourage creativity and innovation are committed to their employer. It’s easy for businesses to get into a “this is how we’ve always done it” rut and resist change, but data like this shows that this attitude is detrimental to employee engagement. Instead, actively encourage employees to innovate and explore new ways to do things. They’ll enjoy their jobs more, be more committed and help to power your business forwards.

2. Lower Turnover

Did you know that whenever a staff member leaves, it can cost 33% of their salary to replace them? Hiring recruiters is expensive, but even if you look for someone independently you’re going to need to spend valuable time and money on advertising the position, and screening and interviewing candidates. And that’s not the end of the problem – it’s unlikely a new person will be as comfortable in the role as their predecessor – they’ll require training and time to acclimatize to their new job. In fact, a new employee can take up to 2 full years to reach the same level of productivity as an existing staff member. In the vast majority of circumstances, that’s going to mean some degree of lost productivity.

It’s clearly in a business’ best interests to retain as many of their staff as possible, but with widespread disengagement becoming more and more of a problem, employees are more likely to leave their jobs than ever before. A job for life has become a thing of the past. Estimates vary, but research suggests that as many as 51% of employees were looking to leave their jobs in 2017. And for those who are worried about employees being poached by recruiters and competitors, you might have reason to be paranoid – 81% of employees would consider leaving their current role for the right offer.

On the other hand, a marker of engaged staff is company loyalty. Highly engaged staff are 87% less likely to leave an organisation than less engaged staff. So if you want to reduce staff turnover, it’s worthwhile to take a look at exactly what’s ruining engagement and driving people to leave:

With this in mind, who you hire as a manager and the way you train them is absolutely vital for employee engagement. Audit your existing managers to ensure that they’re fit to lead, and be selective when hiring new ones. An effective manager prioritizes supporting their staff, leaving employees feeling far less disenchanted with their jobs. Furthermore, by implementing company-wide recognition programs, staff will feel more appreciated and motivated to work (rather than just motivated to find a new job).

3. More Productive Employees

As Albert Einstein once said, “The best creative work is never done when one is unhappy.” This remains true in the modern workplace, with overall productivity increasing by 20-25% when employees are engaged.

A big factor in reducing productivity and engagement is work overload and excessive stress. Some managers think that by setting more work and piling the pressure on, they’ll get better results. If you’ve ever felt overwhelmed at work, you probably know that the opposite is true:

It’s clear that stress is not an effective motivator. Instead, take a positive and constructive approach to each employee’s work to ensure that workloads are manageable. Implement effective and personalized feedback and communication structures that allow employees to raise any problems they’re having in a non-judgmental setting.

4. Happier Customers

Happy employees create happy and satisfied customers, and the numbers prove it: companies with a formalized employee engagement program enjoy 233% greater customer loyalty. It makes sense, really – if you’re unhappy at work, the last thing you want to do is have a chirpy, helpful conversation with a customer.

It’s worth noting that part of the reason for this is that engaged employees are often well-trained employees. Far too often, companies neglect thorough training programs in favor of ad-hoc and informal “on-the-job” style training.  This sort of training often delivers inconsistent results, with employees feeling they lack the skills and knowledge to perform their role properly: 28% of employees feel they’d be more productive with better training.

Meanwhile, employees who have received comprehensive training deliver superior customer service and achieve better results for their company. For salespeople, formal and dynamic coaching can improve their win rates by 28%. Furthermore, a lack of training frustrates employees and gives the impression there’s little room for development in their current role. Indeed, ongoing employee development programs beyond initial training periods are absolutely crucial; in a survey by CV Library, 31% of respondents cited a lack of development opportunities as the top reason for wanting to quit their job. If you want engaged employees, you need to invest in their future. After all, you stand to benefit too!

The Bottom Line: Employee Engagement is Worth the Investment

At the end of the day, your employees are more valuable and important to your business than any other asset. People spend a third of their lives at work, and it’s in your best interests to make sure they’re not miserable that entire time.

Management shouldn’t be about forcing as much work as possible out of employees at any cost. You want employees that are happy at work & want their company to succeed, rather than someone who’s looking for a quick exit because they’re unhappy.  By prioritizing employee engagement, you can enjoy all the above benefits: greater profits, lower turnover, more productive employees & happier customers…It really is a win-win situation!

To learn more about the importance of employee engagement, take a look at Achievers white paper The True Cost of Employee Disengagement.

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About the Author
Becca Armstrong Becca Armstrong is a content writer for MadMax Adventures, a purpose build outdoor activity center near Edinburgh, Scotland. They run corporate away-days for businesses that want to improve organisational performance by developing more cohesive teams, rewarding high performance or building relationships with valued customers.

 

 

 

 

A Culture of Learning

5 Reasons to Create a Culture of Learning in Your Organization

Traditionally, a six-figure salary and 401k options were enough to attract and retain top talent. We no longer live in a traditional world—and the modern workplace has come a long way from what it used to be. While these benefits are still important to employees, they’re not prioritized like they once were. Today, employees are more focused on finding a company that has a positive, strong company culture revolved around learning and growth.

To cater to the “modern” employee and remain competitive in your respective industry, you have to focus on the development of a strong company culture that supports learning and employee growth.

Here are five more great reasons to bring this culture of learning to your organization.

  1. Employees Want to Learn

Today’s employees are eager to develop their skills. According to DevelopIntelligence’s 2017 DI Developer Survey, 55 percent of those surveyed said they seek out training in order to meet current or upcoming needs or to advance their careers. Organization’s that embrace a culture of learning not only encourage learning, but have an opportunity to provide their employees with these opportunities and experiences.

Try it: Start by asking each team what they want to learn about. Perhaps they’ll be interested in attending one big conference, rather than having a series of smaller in-office seminars. The more interested your employees, the more effective the opportunity will be.

  1. Employees Want to Grow

Not only do employees want to learn, they also want a chance to grow professionally and advance their careers. In a recent Gallup poll, 87 percent of millennials said development is important in a job. Learning and development go hand in hand, help employees become the successful employees they want to be.

Try it: Tie learning and promotion opportunities together. Give employees a chance to show they can take on a new position, empowering them to advance themselves both professionally and personally within the workplace.

  1. Learning Reduces Turnover

Did you know that 40 percent of employees who receive poor training and limited opportunities for development will leave their job within five years? On the other hand, a Columbia University study found that that the likelihood of job turnover at an organization with rich company culture is a mere 13.9 percent. Make learning a part of that culture and you may see your turnover rate plummet to zero.

Try it: Don’t just talk the talk, walk the walk by providing training that’s actually valuable, actionable and useful for every employee. Liz Alton, contributor to ADP’s Spark blog suggests implementing a Learning Management System (LMS), developing paths for every employee, and creating learning processes, like mentorship, which is found to be more effective than seminar-style opportunities.

  1. Engaged Employees Are Productive

Giving employees the opportunity to learn, develop, and grow will increase employee engagement—and engaged employees produce better results. According to Gallup’s 2017 Employee Engagement report, those companies in the highest quartile experience 17 percent higher productivity, 20 percent higher sales, and 21 percent higher profitability among many other positive metrics resulting from higher engagement levels.

Try it: Pair learning opportunities with an HR technology platform like Achievers, which allows you to keep employees engaged with recognition, milestones, and rewards. With an effective employee recognition program, you can ensure employees are being frequently recognized and rewarded by both peers and management for their achievements in learning and development.

  1. Learning Fosters Innovation

Companies that emphasize continuous education and development are able to develop the talents of their employees on a regular basis. This focus on talent development is a top priority for 80 percent of top executives, according to the 2017 Workplace Learning Report.

Try it: Use Intrapreneur programs to empower employees to use their new skills to innovate within the organization. As you build your program, keep these four building blocks in mind.

Create a Culture of Learning This Year

Employees want to learn. Learning keeps employees engaged. Engaged employees are productive and happy. Creating a culture of learning benefits everyone involved, and can be brought into any business, big or small. Use these simple reasons as inspiration to help your employees become the people they want to be, while taking your business to the next level.

Take the first step towards improving your culture by accessing the eBook Recognition Culture: The MVP of Employee Experience.
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Do you have any thoughts on this article? Share your comments below.

About the Author
Jessica ThiefelsJessica Thiefels has been writing for more than 10 years and is currently a professional blogger and freelance writer. She spent the last two years working tirelessly for a small startup, where she learned a lot about running business and being resourceful. She now owns her own business and has been featured on Forbes. She’s also written for StartupNation, Manta, Glassdoor and more. Follow her on Twitter @Jlsander07 or connect on LinkedIn.

 

 

 

 

retain employees

4 Ways to Avoid the Dreaded High-Turnover Rate

The cost of employee turnover is outrageously high. When a company loses a salaried employee, it can cost anywhere from six to nine months’ worth of the departed employee’s salary to hire a replacement. This means that if an employee is being paid $40,000 a year, the cost of everything from recruiting to training expenses will be around $20,000 to $30,000. In addition to costing your company a fortune, it can discourage talented employees from joining your organization. High turnover is one of the major red flags job seekers look for when considering a new employment opportunity.

Here are four ways companies can step up their game and hold on to the talented employees they worked hard to acquire:

  1. Get Rid of Top-Down Management

Everything in the business world is evolving and the concept of management is not immune. Many of the old rules and practices no longer apply, and the lack of a modern workplace philosophy is forcing skilled workers to leave their current company and take their talent elsewhere. The top-down approach to leadership and ruling with an iron fist is no longer a popular way to run a business.

In today’s workplace, the term “collaborative leadership” is commonly cited as a strong approach to employee management. This concept emphasizes leading by example and focusing on both corporate and individual benefit. For instance, Jacob Morgan, author of The Future Of Work, explained in a Forbes article how AMP Bank in Sydney, Australia makes it a point to sit down with each employee to explain how new technologies and strategies can benefit both parties.

It’s important to realize the vital role management plays in the development of a company. Gallup estimates that managers account for 70 percent of the variance in employee engagement scores across business units. Great leadership is a crucial factor in retaining employees; it goes back to the famous saying that “people don’t leave jobs, they leave managers.”

  1. Learn What Millennials Want

By 2020, it’s estimated that nearly half of the workforce in the United States will be comprised of millennials. Therefore, it is crucial to determine what these younger employees want out of a company. Ask yourself the following questions:

Millennials are looking for more than just a job with a steady paycheck, they want careers in which they are engaged with their company’s goals, and can develop their professional skills. A 2014 survey conducted by the Harvard Business Review and The Energy Project found that employees are most engaged when these four core needs are being met:

  • Value – Being cared for by their supervisor
  • Purpose – Finding significance in their work
  • Focus – Prioritizing
  • Renewal – Ability to take needed breaks

Regardless of the age of the employee, there is nothing worse than being stuck at a job that isn’t motivating. Fostering employee engagement can be difficult. However, emphasizing honesty and transparency for both company and employee alike can be integral in obtaining uninhibited employee feedback to gauge the direction of your workforce and what motivates them.

  1. Promote a Culture of Innovation

Everyone wants to be involved in a cutting-edge organization. Companies that want to remain ahead of their competitors must do their best to promote this mindset both internally and externally. For starters, when you’re advertising a job opening, take a step back and examine what your company is doing differently than similar organizations. Once you have a firm answer, drive this idea home and showcase what your business is collectively bringing to the big picture compared to your competitors.

Based on your business, this can be a daunting task. But, regardless of what product or service you provide, there is always room for innovation. Take Michelin for example. Tires might not seem like an innovative product but the science behind how rubber interacts with the road is complex. To promote a company-wide innovative mindset, Michelin sponsors cross-functional hackathons and internal incubators where employees are free to take risks and come up with new ideas for the good of the company.

Making sure that innovation is a strong aspect of your culture can play an enormous role in keeping employees engaged and motivated.

  1. Recognize and Reward Employees

While this one might seem obvious, it is still accurate: everyone likes to know their hard work is being noticed. Great employees are hard to find, and even harder to keep. So when you notice colleagues going above and beyond the call of duty, it’s important to provide plenty of recognition and rewards to encourage repetition. Recognition is essential to employee engagement and The Corporate Leadership Council shared in a recent report that highly engaged employees are 87 percent less likely to leave the organization.

Events like company-sponsored happy hours or weekend getaways celebrating a strong quarter can go a long way in demonstrating to employees how much their work means to an organization. Going beyond these types of “job well done” gestures, making sure top performing employees are appropriately compensated is the most important factor in employee retention.

To address this, you can try setting up recognition and rewards programs that encourages daily praises and constant appreciation. Or consider implementing programs within the workplace that are transparent when it comes to pay raising goals, such as merit-based pay structures. Just be sure to set goals at a level in which employees will need to put their best foot forward, while remaining reasonably attainable.

Talented workers tend to know their worth. If you are not paying them appropriately, they will have no problem finding an organization that will.

Over to You

Retaining high performing employees in the current business climate is very challenging, and with the many detrimental costs of employee turnover, your company’s bottom line could be adversely affected. If your turnover rate is higher than you would like, it might be time to take a close look at day-to-day operations and find the root cause as to why people are so willing to leave your organization. Sometimes, it is a simple fix. Other times, a complete organizational reinvention is needed to ensure the external perception of your organization matches the internal. At the end of the day, a company that focuses on engaging their employees, whether through strong leadership, culture, recognition, or rewards is on the right track to reducing turnover.

To learn more about employee turnover, check out the blog post How to Spot Who’s Going to Quit Next.

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About the Author
Lori Wagoner is a market research consultant. She advises small businesses on new ways to find local and national business. She’s an avid blogger and writes for sites such as Small Business Can, Tweak Your Biz and Customer Think. You can catch her on Twitter @loridwagoner.

 

Reasons to welcome the millennial influence

The Demands of Millennials Make Our Workplaces Better

For all the complaining about Millennials and their approach to the modern workplace, they are actually responsible for much of the change happening in the modern workforce. Their entry into the workforce, was accompanied by a slew of stereotypes, followed recently by a round of myth-busting, with statistics and all, aimed at debunking those stereotypes. As an “ancient Millennial” myself (a term I borrow from journalist Jessica Grose), I can attest that at least some of the stereotypes come from kernels of truth, but like most stereotypes , they must be taken with a grain of salt. More importantly, many of the changes Millennials bring to the workplace are actually good for everyone. Change is always hard, so it’s natural to initially oppose or question the forces of change. However, most of the changes that Millennials have brought about have actually made for a better workplace.

The influence of the Millennial generation is not to be underestimated, if for no other reason than its size. According to a recent report from SHRM, (“Millennials: Misunderstood in the workplace?”) as  Baby Boomers exit the workforce, an even greater number of Millennials will continue to enter the workforce to take their place. In fact, it is estimated that Millennial workers (those born between 1980 and 2000) will make up more than  half of the workforce by 2020. And, according to Pew, they already make up the largest overall share of workforce, having surpassed Gen X’ers in 2015. With those facts established, here are four reasons to welcome the Millennial influence:

Generalization #1: They need constant feedback: Millennials grew up in a feedback culture. Some say that Millennials are obsessed with getting positive feedback (you’ve likely heard of the “trophy generation”, but put simply, it is the belief that we are doing our youth a disservice by lauding them for mere participation rather than awarding success.). But even if that’s true, it likely contributed to an encouraging new trend – the phasing out of annual performance reviews. An annual performance review simply doesn’t tell us enough in today’s fast-paced business culture. If HR hears a complaint about an employee but their 8-month old performance review shows high marks, that documentation does little to advise any action. In 2017, we will likely see employers implement more regular feedback conversations along with frequent “pulse” surveys to help identify and address employee concerns in a more timely, actionable fashion.

When employers engage employees in regular, smaller-scale conversations, both management and employees are better equipped to deal with issues as they come up. This in turn helps employees to feel more engaged because they know their suggestions and concerns are being listened to. Furthermore, by combining these mini performance management conversations with real-time feedback tools for employees, management can help facilitate a culture of transparency in which both positive and negative business outcomes can be celebrated or addressed openly.

Generalization #2: They demand more work life balance: One of my favorite Millennial trends is that men are beginning to demand more time with their families. They ask for paternity leave more than their fathers did, for example. And because married Millennials overwhelmingly co-lead a dual-income household, they can’t buy into the 80-hour work week like their fathers did before them. As a recent article in The New York Times put it: “Millennial men—ages 18 to early 30s—have much more egalitarian attitudes about family, career and gender roles inside marriage than generations before them, according to a variety of research by social scientists. Yet… workplace policies have not caught up to changing expectations at home.”

Likewise, a Department of Labor report also highlighted the growing importance of paternity leave as men consider whether to accept a job, noting: “Paid paternity leave may be a key workplace benefit for retaining high-skilled workers. In a 2014 study of highly educated professional fathers in the U.S., nine of out ten reported that it would be important when looking for a new job that the employer offered paid parental leave, and six out of ten considered it very or extremely important. These numbers were even higher for millennial workers.”

Millennials came of age watching their parents work long hours and aren’t convinced it translates to a happier existence, or even a fatter nest-egg for themselves. With this in mind, employers would be wise to encourage work-life balance in the name of productivity and worker satisfaction. Even the U.S. Commissioner of Labor Statistics agrees that hours with your butt in a seat does not equate to more productivity, “Only if we increase our efficiency—by producing more goods and services without increasing the number of hours we work—can we be sure to increase our standard of living.”

Generalization #3: They need hand-holding. It’s true that most managers don’t have time for hand-holding. However, research published in the Journal of Workplace Learning shows that companies who have a “culture of learning” rely not just on managers to disseminate information. Not only does their training help them perform their job functions better, but employees who are able to embrace learning and growth opportunities also feel more valued and engaged, doubling the value for the company. Learning can happen anytime, often facilitated by a co-worker (“Contextual factors influencing the facilitation of others’ learning through everyday work experiences” by Andrea D. Ellinger Maria Cseh), so managers don’t have to feel the exclusive burden of teaching their staff everything.

Generalization #4: They feel entitled to career advancement: Climbing the corporate ladder just isn’t as important to Millennials as it was to their parents (see Generalization #2: they value more work-life balance.) When they see their managers put in long hours at the cost of their personal lives, it doesn’t look appealing. In addition, Millennials learned the difference between “management” and “leadership” before they even entered the workforce, and the 80 hour week management job that only serves to maintain the status quo is not their idea of having an impact. Millennials might feel entitled to advancement in a different sense. They want to keep learning and keep contributing. If other generations in the workplace adopted this sense of motivation, you might not see a scramble to fill the senior manager job, but you’d have leaders everywhere.

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About the Author
Anna PetersAnna Peters is Content Manager for College Recruiter. She manages all content, supervises a team of content writers and is part of College Recruiter’s senior management team. Her prior experience at nonprofits has made her an expert in directing volunteer recruitment and a champion for diversity and inclusion efforts. Connect with Anna on LinkedIn.